texts of Account 172, "Amortization reserve," and Account 613, "Amortization of intangible property." (d) Determination of original costs: The original cost of telephone plant retired shall be the amount at which such property is included in the telephone plant accounts when such amount can be determined from the company's records. Ordinarily, such records shall be used in the retirement of land, buildings, complete central offices, furniture, and other items of plant for which individual cost records are maintained. When the actual original cost cannot be determined from the records, it shall be estimated. When it is impracticable to determine the original cost of each item due to the relatively large number or small cost of such items, the average original cost of all the items shall be used in determining the original cost of the items retired: Provided, however, That when classes of outside plant are subdivided between exchange and toll or by areas, the bases of such average original costs shall be confined to items comprised in the respective subdivisions. This method of average original cost may be applied in retirement of such items as telephones, bell boxes, station installations, poles, crossarms, wire, cable, cable terminals, conduit, and nonmultiple private branch exchange switchboards. (e) The accounting for the retirement of organization, franchises, patent rights, and other intangible property, shall be as provided for in the texts of Account 172, "Amortization reserve," "Account 413, "Miscellaneous debits to surplus," Account 613, "Amortization of intangible property," and Account 100: 4, "Telephone plant acquisition adjustment." (f) When telephone plant is sold together with the telephone traffic associated therewith, the original cost of the property shall be credited to the appropriate plant accounts and the estimated amounts carried with respect thereto in the depreciation and amortization reserve accounts shall be charged to such reserve accounts. The difference, if any, between (1) the net amount of such debit and credit items and (2) the consideration received (less commissions and other expenses of making the sale) for the property shall be included, if a debit, in Account 410, "Debits for telephone plant sold," and if a credit, in Account 401, "Credits for telephone plant sold." The accounting for depreciable telephone plant sold without the traffic associated therewith shall be in accordance with the accounting provided in paragraph (b) of Account 171, "Depreciation reserve."*† 31.2-26 Telephone plant continuing property record required. (a) Not later than January 1, 1937, each company shall begin the preparation of a continuing or perpetual detailed record of telephone plant. The record shall be completed not later than June 30, 1939, with respect to telephone plant as at December 31, 1936, and with respect to the changes effected therein between the dates of January 1, 1937, and December 31, 1938, both inclusive. (b) The record shall be arranged in conformity with the telephone plant accounts prescribed in this classification. It shall be compiled on the basis of original cost (note § 31.01-3 (x)) and shall contain such detailed description and classification of the property units as *For statutory citation, see note to § 31.01-1. Page 303 will permit of ready verification.*t [As amended by Order 31, FCC, Jan. 11, 1938, 3 F.R. 202] TELEPHONE PLANT ACCOUNTS 31.201 Organization. This account shall include the cost of organizing and incorporating the company. (Note also §§ 31.1-14, 31.1-15.) ITEMS [Note § 31.01-8] Amounts paid for legal services. Amounts paid for privileges of incorporation. Office expenses incident to organizing the company. Special counsel and other fees and expenses in mergers, consolidations and reorganizations. NOTE A: This account shall not include any discounts on securities issued, nor shall it include costs incident to negotiating loans, selling bonds or other evidences of debt, or expenses in connection with the authorization, issuance, sale or resale of capital stock. NOTE B: Exclude from this account and include in Account 664 the cost of preparing and filing papers in connection with the extension of the term of incorporation unless the first organization costs have been written off. NOTE C: When charges are made to this account for expenses incurred in mergers, consolidations, or reorganizations, amounts previously included in this account on the books of the various companies concerned shall not be carried over. In §§ 31.201 to 31.277, inclusive, the numbers to the right of the decimal point (except that a colon has been substituted in each instance where a decimal point was used in the original account number) correspond with the respective account numbers in Uniform system of accounts for (Class A and Class B) telephone companies, Federal Communications Commission, effective Jan. 1, 1937 (Orders 7-C, 7-D). Cross references to accounts are made by citing the account number, e.g., Account 201, instead of the corresponding section number (§ 31.201). 31.202 Franchises. This account shall include the original cost (note § 31.01-3 (x)) of governmental franchises and similar rights running for more than 1 year which are necessary in the conduct of the company's telephone operations. It shall include amounts paid in cash and the cost of plant, material, supplies, and equipment given as the initial consideration for such franchises; cost of advertising, governmental election costs assumed by the company, and similar expenses incurred in procuring such franchises; also the original cost of franchises acquired by assignment. This account shall include amounts, other than those includible in Account 201, "Organization," paid to municipalities or other governmental agencies as a condition precedent to engaging in business, whether or not the right to occupy city property, streets, and highways is obtained in connection therewith. (Note also § 31.2-22 (b) (7).)*†† NOTE A: The cost of franchises running for 1 year or less after acquisition shall be charged to Account 673, or, if such franchises extend beyond the current year, to Account 133. Franchises acquired at small cost may be charged to Account 673 irrespective of their term of life. NOTE B: Franchise taxes (payable annually or more frequently) shall be charged to Account 305. Page 304 *For statutory citation, see note to § 31.01-1. For source citation, see note to § 31.2-20. NOTE C: This account shall not include the cost of plant, material and supplies, or equipment furnished to municipalities or other governmental authorities when given other than as initial consideration for franchises or similar rights. (Note also Account 673.) 31.203 Patent rights. This account shall include the original cost (note § 31.01-3 (x)) of patent rights having a life of more than 1 year from date of acquisition for use in connection with the company's telephone operations.*† NOTE: The cost of patents having an estimated service life of 1 year or less and patents acquired at small cost shall be charged to Account 675. 31.207 Right of way. This account shall include the original cost (note § 31.01-3 (x)) of land, and of leaseholds, easements, and similar rights in land having a term of more than 1 year, acquired for the location of pole line, cable, wire, and conduit plant, also the cost of permits to erect poles and to place conduit when the expected period of occupancy under such permits exceeds the estimated life of the initial plant installed. It shall include the related portion of the pay and expenses of right of way agents and other costs of acquiring such land, rights, and permits.*t NOTE A: The cost of permits to erect poles and to place conduit when the expected period of occupancy under such permits does not exceed the estimated life of the initial plant installed, also the cost of other permits not includible in this account, such as those to place cable and wire on buildings and fences, and the related pay and expenses of employees and other costs incident to acquiring such permits shall be included in the account appropriate for the cost of the property constructed. (Note also § 31.2–22 (b) (7).) NOTE B: Annual or more frequent payments for the use of right of way shall be charged to Account 671. NOTE C: Payments to municipalities or other governmental agencies (exclusive of franchise taxes) as consideration for a franchise or right to conduct the company's telephone operations, whether or not the right to occupy city property, streets, and highways is obtained thereunder, shall be accounted for as franchise payments. (Note also Accounts 202 and 673.) 31.211 Land. (a) This account shall include the original cost (note § 31.01-3 (x)) of land and of leaseholds, easements, and similar rights in land having a term of more than 1 year used for general and central office buildings, garages, shops, and for storage and other telephone purposes other than right of way. It shall also include special assessments upon lands for the construction of public improvements. (Note also § 31.2-25 (c).) (b) When land, together with buildings thereon, is acquired the original cost shall be fairly apportioned between the land and the buildings and accounted for accordingly. If the plan of acquisition contemplates the removal of the buildings, the total cost of the land and buildings shall be accounted for as the cost of the land, and the salvage value of the buildings when disposed of shall be deducted from the cost of the land so determined. (See also Note E to this account.) Assessments for the construction of public improvements. (See also Note D to this account.) Clearing or defending title against claims relating to period prior to purchase. Commissions and fees to brokers, agents, and others. *For statutory citation, see note to § 31.01-1. Page 305 Condemnation proceedings, including court costs and special counsel fees. Examination and registration of titles. Grading of land not in connection with buildings. Relocating property of others in acquisition of land. Sidewalks on public streets abutting company's property. Taxes assumed, accrued prior to date of acquisition. Taxes on land during the period of construction. (Note also § 31.2–22 (b) (8).) Voiding leases to secure possession of land acquired. NOTE A: Annual or more frequent payments for the use of land shall be charged to the account appropriate for rents. NOTE B: When land is acquired for which there is not a definite plan for its use in telephone service, its cost shall be charged to Account 103. NOTE C: When land is acquired in excess of that required for telephone purposes, the cost of such excess land shall be included in Account 103. NOTE D: Installments of assessments for public improvements, including interest, if any, which are deferred without option to the company shall be included in this account only as they become due and payable. Interest on assessments which are not paid when due shall be included in Account 336. NOTE E: In case land is purchased for immediate use in a construction project, its cost shall be included in Account 100: 2 until such time as the project involved is completed ready for service. 31.212 Buildings. (a) This account shall include the original cost (note § 31.01-3 (x)) of buildings, and the cost of all permanent fixtures, machinery, appurtenances, and appliances installed as a part thereof. It shall include costs incident to the construction or purchase of a building and to securing possession and title. (b) When land, together with the buildings thereon, is acquired the original cost shall be fairly apportioned between the land and buildings, and the amount applicable to the buildings shall be included in this account; the amount applicable to the land shall be included in Account 211. (Note also Account 211.) ITEMS [Note 31.01-8] Awnings. Boilers, furnaces, fixtures, and machinery for heating, lighting, ventilating, and plumbing. Cable vaults and conduits constructed as part of the building. Commissions and fees to brokers, agents, architects, and others. Door checks and door stops. Drainage and sewerage systems. Electric wiring. Elevators. Fences and hedges. Fire-extinguisher systems. Garages, shops, and stables. General and central office buildings. Grading, excavating, and preparing grounds for buildings, including laying out of grounds after construction. Improvements to leased buildings. (Note also § 31.2-23.) Linoleum and similar floor covering, excluding carpets and rugs. Motors and generators. Partitions, including movable. Piers and foundations for machinery constructed as a permanent part of a building. Platforms, storage or loading. Power boards. Refrigeration systems. Page 306 *For statutory citation, see note to § 31.01-1. 个 Retaining walls. Screens, door and window. Sheds. Sidewalks, pavements and driveways on building grounds. Sprinkling systems. Storm doors and windows. Voiding leases to secure possession of buildings acquired. Water, steam, and gas pipes. Water-supply systems. Window shades and ventilators. NOTE A: This account shall not include the cost of any telephone equipment or wiring or apparatus for generating or controlling electricity for operation of the telephone system. NOTE B: The cost of submarine cable terminal huts shall be included in Account 242: 4. 31.221 Central office equipment. (a) This account shall include the original cost (note § 31.01-3 (x)) of electrical instruments, apparatus, and equipment, other than station equipment, in central offices (including terminal and test rooms), repeater stations and test stations used in transmitting traffic and operating signals, and similar equipment in operators' schools and other centralized locations. (b) This account shall also include the original cost of operators' chairs, wire chiefs' tools, desks and tables equipped with central office telephone equipment, and other furniture, fixtures, and equipment designed specifically for use in central offices, repeater stations, etc., or installed as a part of the electrical equipment therein. (See also Note A to this account.) ITEMS [Note 31.01-8] Aisle-lighting equipment. Balconies for distributing frames. Banks-connector, selector. Batteries. Battery cabinets. Boards-floor alarm, power, test, service observing. Building alterations, minor, such as opening and closing holes in ceilings, partitions, walls, and floors to permit installations of equipment, power conduit, and wiring. Cables. (See also Note B to this account.) Calculagraphs. Call registers. Carrier-current equipment. Carrier line filters. Circuit breakers. Covers for transmission power apparatus. Desks and tables when equipped with central office telephone equipment. (See also Note A of this account.) Engines, including special foundations not a part of buildings. Frames-alarm, connector, decoder, decoder connector, line finder, line switch, repeater, selector, sender, test. Fuse boards. Fuse panels. Generators, including special foundations not a part of buildings. Jumper wires. Key indicator equipment. Line filters. Loading coils. (See also Note C to this account.) Loudspeaker equipment. *For statutory citation, see note to § 31.01-1. Page 307 |